ZTE will build Tata Tele network
Daily News & Analysis — June 9, 2006

India's booming telecom sector seems to have caught the fancy of global players, with quite a few of them tying up with local operators to get a piece of the pie. The latest on the scene is ZTE Corp, China's second-largest telecom equipment maker, which has signed a strategic deal with Tata Telelservices. Under the agreement, ZTE will build wireless network based on the code division multiple access (CDMA) standard for Tata Teleservices. ZTE would exclusively supply equipment for Tata Indicom to build networks based on CDMA 2000 technology in the rural areas over the next three years.

Tata Teleservices aims to add over nine million rural subscribers in the next two years. The value of the deal is not known. Tata Teleservices officials were not available for comments. However, highly-placed sources in the company confirmed the alliance with ZTE, which supplies CDMA equipment to over 100 operators in around 60 countries. Tata Teleservices has already launched a stylish mobile phone from ZTE, Indicom Star, in the country. The Chinese firm had last year signed a deal to supply one million CDMA handsets to Tata-Indicom.

Players like LG Electronics, Huawei, Samsung, and Nokia are also providing various devices to Indian firms based on CDMA 2000, for low-cost voice and data solutions. A source said Tata Tele has also entered into equipment supply and service agreements with Motorola, Ericsson, ECI Telecom and Mitsui. The mobile subscriber base in the country has crossed the 100-million mark with GSM operators accounting for 75.3 million and CDMA players having 25.3 million. Tata Teleservices has a customer base of over 7 million today.